by Joel Thomas

As a business leader, how should I interact with the uncertainty that COVID19 presents? 

In life, there are winners and losers…and it is not a static thing, but something that is constantly changing. COVID19 will certainly yield some winners and losers. My mom and seven relatives were on the Princess Cruise ship, and three of them contracted the virus, while the rest of them did not. I am in a unique position where on one hand I own a disaster & emergency management consultancy that is likely to “win” from COVID19, while on the other hand, I am President of a family-owned restaurant will likely “lose”, as we have been forced to close and furlough all employees, and the outlook is bleak. 

These bipolar realities have caused me to reflect on Ecclesiastes 9:11, “Again I saw that under the sun the race is not to the swift, nor the battle to the strong, nor bread to the wise, nor riches to the intelligent, nor favor to those with knowledge, but time and chance happen to them all.” 

Rewind 20 years, and I recall when I met and later married my wife, how we had very little (actually hundreds of dollars) to our names, yet the Lord provided and made a way when at times it seemed we had come to the end. I recall at one point relying on the generosity of others and government healthcare for a season, while my wife and I ate rice and beans most nights for dinner. I consider the opportunity I have had to travel and serve in more than 50 nations as a Christian missionary, humanitarian volunteer and business owner.  I remember also being tempted in those times of great scarcity to stop being generous, but choosing to be generous and share from what I had in my hands to give. I also recall taking a leap from a very comfortable employment situation to “risk it all” and launch my business just months after welcoming a fourth child into the world. I have also had the privilege of building a healthy small business, employing others, and caring for their families as well as our clients around the world. 

In my life, having had opportunities to work in contexts from the slums of East Africa to the White House, I have come to accept the seasons of uncertainty as normative, and that has been informed by experiencing what it means to have plenty and to be in want. And in every season, Christ has been the cornerstone of my life. The words of Paul resonate with me, when he said “I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.” Philippians 4:12. 

The challenge humanity faces with this paradox is that we often hold too tightly to a particular vision of our lives, and become disillusioned when anything upsets that. Jesus is not interested in our comfort, but our “no strings attached” willingness to follow Him. That is going to be tested for many in this season, including entrepreneurs and small business owners. Some of our businesses will falter, others will fail, and some will do just fine. The moment of truth comes when we face the reality that our faith is oftentimes tied up in the success of our business.  

The secret of success in this moment is to look to Jesus’ calm in the midst of the storm. He is the one who invited me off the boat like Peter on the Sea of Galilee to walk in adventurous faith, and now even though the waters are turbulent, He is standing there looking at me. This Palm Sunday, let us reflect on the reality that in these uncertain and ever-changing times, there is only one Rock to cling to, and He is immovable, unshakeable, and ever-present in our time of need. Will my eyes be fixed on Him, or will I waiver in this moment. Just because I have heard His voice in the past does not mean that I am listening right now. Take heed and listen. 

What is the appropriate faith-driven community response to COVID19?

1. Safeguarding lives
A few weeks ago much of humanity, including many churches and people of faith around the world, rallied behind the idea that “flattening the curve = love your neighbor” on the premise that Christians can help to save lives and reduce stress on the healthcare industry by sanitizing and isolating to slow the spread of COVID19. The global directives from health care experts and government officials have led to widespread declarations of emergency, lockdowns, closures, cancellations and stoppage of work in cities, states and nations alike. While we have yet to fully understand the consequences of these decisions, it is appropriate to do everything that we can to protect the health and save the lives of the most vulnerable, and follow the laws of the land and guidance provided by the authorities. I am not a health official and much has been written about this topic, so I will turn to point #2. 

2. Safeguarding livelihoods
Inasmuch as people of faith were motivated out of sincere devotion to God to love their neighbors and protect their health, we should broaden the aperture to consider how we can help to save and sustain livelihoods and reduce long-term suffering by “flattening the economic curve” for businesses, their employees and families in a safe and responsible way. In other words, for faith-driven communities,  “flattening the economic curve = love your neighbor”, and is not mutually exclusive with flattening the health curve. Some may not think we can or should do anything to address economic hardships, or that government will figure it out as they have recently passed a few bills including a $2.2 trillion stimulus, but there are in fact many practical ways we can help our local businesses and the families they provide for in ways that will not exacerbate the health catastrophe. 

In my recent post “A Plan to Black Start the Economy”, I made the case that at a macro-level we need to have a national plan to get businesses and local economies back open as soon as possible in a safe and responsible way, and in the mean-time, we need to find creative and aggressive ways to patronize these businesses and keep cash flowing. Lives and livelihoods depend upon it, and mitigation is the key to success. Legislative and policy maneuvers can serve as temporary bandages, but only real-world commerce and trade will enable economies to heal. This particularly applies to the most vulnerable, including but not limited to small businesses, the 70% of those that cannot telecommute, and especially to 5 of 6 Hispanics and 4 of 5 African-Americans that are unable to telecommute according to the Bureau for Labor Statistics. Let us be mindful and care for one another, especially those in need during this time. 

Morgan Stanley predicts American Gross Domestic Product will drop 30% from April-June 2020. McKinsey just published nine economic scenarios including the definition of the “imperative of our time” which is to both safeguard lives and safeguard livelihoods.

At this time, nations have no plans to restart their economies, as the focus is on health and life safety. We need to begin planning for and contributing to economic recovery now at the policy level and the grassroots level, because without collective action, there will be unretractable losses that are avoidable and that will cause great suffering to many families. Therefore, I implore you to help mobilize your networks to flatten the economic curve for small businesses in your community in creative, safe and responsible ways. 
It is both a faith-driven and pragmatic response to our present reality.

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

by Vip VIpperman

At the heart of an entrepreneur is the curiosity and desire to find a solution where others see a problem.  We at The Lion’s Den DFW are entrepreneurs just like many of you.

Our purpose for the last 5 years has been to provide a platform so that real businesses can meet real investors to make real impact.  By all measures, we have achieved that goal through God’s grace, and we have many of you in our network to thank for that result.

Through God’s grace over the last 5 years, we have been building relationships with entrepreneurs, investors and accelerators globally.  

And in the next few years, we hope to grow our reach even more internationally as we have more investors and entrepreneurs from all over the world who are interested in being involved. Now with the coronavirus challenges for live engagement, we are accelerating that timeline and bringing to life a virtual Lion’s Den event so that the message of marketplace returns + kingdom impact can reach the ends of the earth. 

So, we are pushing the 5th annual live event to the Spring of 2021 and adding our first global virtual pitch event on April 16th.  

During this time of confusion and unrest, we hope to bring a message of hope to entrepreneurs and investors across the world and, through a virtual event, to reach more people in more countries.  

And we hope to get these incredible 10 companies, who were chosen earlier this year, funding so they can make their mark on the world
So, on the morning of April 16th, The Lion’s Den will continue to do what it has always done by uniting business leaders from all over the globe for a one day 3 hour virtual event. There will be live pitches from entrepreneurs who are actively looking for capital, a keynote message from a nationally known entrepreneur and investor who has weathered many storms, and TED style sessions covering inspiring and educational content relevant to this unique time in history and done by recognized leaders in Private Equity, Venture Capital and Family Offices. 

Session topics will include, but not be limited to, biotech and healthcare markets today, how companies have responded to and thrived in times of recession the last 100 years, how the cream will rise to the top in the venture capital markets, how to keep a strong Kingdom culture in your business during times of crisis, and what is on the heart of Christian family offices during this unique time of unrest. 

Join us on April 16th from 9am-12pm (CT) as we seek to inspire, educate and mobilize investors and entrepreneurs around the world.  Click to learn more and register today.

https://www.thelionsdendfw.org/ld-dfw-virtual-conference.html

So get out there and invite more people to be involved instead of worrying about how much TP you need in the cupboard.

This article was originally published here by Christianity Today.

by Matt Smethurst

It’s now clear that COVID-19 is a deadly serious global pandemic, and all necessary precautions should be taken. Still, C. S. Lewis’s words—written 72 years ago—ring with some relevance for us. Just replace “atomic bomb” with “coronavirus.”

In one way we think a great deal too much of the atomic bomb. “How are we to live in an atomic age?” I am tempted to reply: “Why, as you would have lived in the sixteenth century when the plague visited London almost every year, or as you would have lived in a Viking age when raiders from Scandinavia might land and cut your throat any night; or indeed, as you are already living in an age of cancer, an age of syphilis, an age of paralysis, an age of air raids, an age of railway accidents, an age of motor accidents.”

In other words, do not let us begin by exaggerating the novelty of our situation. Believe me, dear sir or madam, you and all whom you love were already sentenced to death before the atomic bomb was invented: and quite a high percentage of us were going to die in unpleasant ways. We had, indeed, one very great advantage over our ancestors—anesthetics; but we have that still. It is perfectly ridiculous to go about whimpering and drawing long faces because the scientists have added one more chance of painful and premature death to a world which already bristled with such chances and in which death itself was not a chance at all, but a certainty.

Check out the rest of this article here!

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

by Eric Chetwood

Ephesians 4:11-12 – and he gave…shepherds and teachers to equip the saints for the work of the ministry.

I have worked in wealth management since 2004 and over the course of my career, I’ve experienced two big paradigm shifts that have dramatically changed how I see myself at work.   

The first of which was coming to understand God’s design for us to live integrated lives, combining the sacred and the secular, which has been discussed thoroughly on this website as well as the podcast and I am so grateful for Henry and William driving that conversation, because living compartmentalized lives does not lead to our flourishing.  

The second paradigm shift, and what I’d like to focus on today, is the notion that God intends for you and me, ordinary people, to be the primary agents of ministry and reconciliation in this world. There have been so many times in my life where I would meet someone and think, “if only they could meet my pastor, then they would love Jesus.” Or, “if only they would come to church and hear my pastor, then they would understand how much God loves them.” However, I have come to learn that this is a very unbiblical paradigm. When Paul is laying out the key performance indicators of the early church in Ephesians 4, he says that a pastor’s job is to equip the saints for the work of the ministry. This statement has massive implications. It means that the pastor should not be the only one doing ministry. It means the pastor should not even be the primary one doing ministry. In fact, it means that you and I and everyone reading this are both empowered and expected to be the primary agents of gospel ministry! Until we understand this democratization; until we see ourselves as ministers of the gospel in real estate, or a kingdom of priests in wealth management, or as ambassadors of Christ in private equity, as if God were making his plea of reconciliation through us, we miss out on part of the great adventure. We miss out on the joy of knowing we are fulfilling our integrated purpose in life.

In light of that, I thought it might be helpful to start a discussion around what does it mean to be a faith driven financial advisor? What are some practical things that each of us can do, as advisors, to be the primary agents of ministry in the lives of our clients? Below are ten things that our team does, some consistently well, some not as well but all are things we are leaning in to and striving for by God’s grace.  

One. Recognize that your relationship with clients is by nature one of the most intimate professional relationships that they have. No one, maybe other than their doctor, is allowed into their hopes and dreams and vulnerabilities the way that we are. Therefore, God could potentially use you to make a bigger impact in their life than any pastor or priest.

Two. You will never be able to be the financial advisor that God has called you to be if you are pouring out of an empty cup. We must shepherd and lead out of the overflow of what God is doing in our own hearts. Therefore, our highest professional priority must be to first abide in him daily. Apart from him, we can do nothing. 

Three. We are not here to make rich people richer. We have a holy calling to care for them in every way that money impacts them: financially, emotionally, relationally, and even spiritually. We have an opportunity to show our clients a vision of what a shalom relationship with money looks like. 

Four. Hire a client chaplain through Marketplace Chaplains or Corporate Chaplains of America. Many companies have chaplains for their staff.  We have a chaplain for our clients. When a client loses a spouse or gets a cancer diagnosis, there are certainly financial implications. But in that moment, they don’t want to hear about the internal rate of return or standard deviation. When clients share the unimaginable with us, we hurt with them, pray with them if they’ll allow us and then tell them that we have a chaplain on staff that would love to come and sit with them, hold their hand, and help them process in a kind and nonthreatening way. 

Five. Give them books that will shatter their wealth paradigm. I’ll give you a personal example. A few years ago, I read the book God and Money by Gregory Baumer and John Cortines, and it absolutely wrecked me; in a good way; in a great way. So, I would explain in client reviews how it changed me and how it changed our planning practices and then I’d give them a copy of the book to read. The feedback has been more than I could ask or imagine. We now track the number of gospel finance books given away as one of our KPI’s.  

Six. Help clients understand that giving away their time, talent and treasure is not a guilt-driven obligation, but a life-giving emancipation! Empirical research shows that sacrificial giving leads to higher levels of happiness. Of course, wealth can be a powerful force for good, but we also recognize that money has a seductive, almost corrosive effect on our hearts. The primary antidote to its seduction is to give away our first fruits. As I’ve heard it said, generosity is not something God wants from us. It is something he wants for us. As advisors, we can facilitate this discovery in the financial planning process by elevating charitable goals as being just as important to a client’s financial well-being as goals around retirement age, retirement spending, etc. 

Seven. Pray through your client list in team meetings or on your own. If you serve 100 clients and have 50 weekly staff meetings in a year, open your meetings by praying for two clients by name. Pray that God would bless them and that they would comprehend the magnitude of the height and depth and breadth and width of his love for them. Pray that they would taste and see that He is good and that His love is better than life.  Not every one of our clients loves Jesus, but that doesn’t change the fact that Jesus loves every one of our clients. 

Eight. Use portfolios that are God-honoring. In God’s economy, how we make a profit is just as important as how much we make in profit. As investment managers, we can and should proactively show our clients ways that we can run screens to make sure their values align with the companies that they own, even if those companies are hidden under the hood of a mutual fund or ETF. Our clients are relying on us to help guard their integrity by making sure that they are not put in a position where they are hypothetically fighting for the lives of the unborn and then subsequently subsidizing the abortion industry through the holdings in their IRA. One such screening tool can be found at inspireinsight.com.

***In the event that you work in wealth management but your role within the firm does not actively participate in portfolio construction, you can still be an advocate within your firm for fund companies that align with client values. Some faith-based fund companies that are worth researching are Eventide, Thrivent, Praxis funds, Timothy funds, Inspire funds, Ave Maria funds and others. 

Nine. Sharpen the saw with other like-minded advisors through a Kingdom Advisors study group. We were not designed to go it alone. All of us need encouragement, accountability, and an opportunity to exchange best practices with other like-minded advisors who care about us and desire our best future. Sometimes, the only person that is going to understand what you’re going through is another financial advisor. But Eric, do we really want to share our best practices with the competition? In all the years I’ve been doing this, I have learned that we gain so much more through collaboration than we ever lose to competition. I do not consider you my competition. This business is not mine; it’s God’s. Your business is not yours; it’s God’s. And, God is not a God of scarcity but a God of abundance. I am confident there are plenty of clients who are longing for someone to show them what a shalom relationship with money looks like. 

***If you do not have access to a Kingdom Advisors study group, another great option for Christian business owners is a group called C-12.  It is a faith-based peer advisory group that has been incredibly helpful to me personally and to our wealth management practice.  

Ten. Attend the annual Kingdom Advisors conference for continuing education, retreat and renewal. I have attended many continuing education conferences over the course of my career but this one struck a different nerve. I am not on their payroll or anything, so I can unashamedly say that the KA Conference in Orlando provided sharpening for my brain, a recharge for my body, and nourishment for my soul. If you are thinking about going in the future, I promise you it is worth the investment of time and money; even more so if you bring your spouse. 

So those are ten practical ways to be a faith driven financial advisor.  My prayer is that this list is just the beginning, or even a continuation, of a nationwide conversation.  Sharing ideas begets more ideas. What practical things do you do to be an ambassador of Christ in the world of wealth management? 

This article was originally published here by Christianity Today.

by Todd Wagner

With the increasing coronavirus cases outside of China, many believers across the United States wonder how to respond to the increasing alarm. What would God have us do in the face of a growing international health crisis? Should our churches close their doors for fear of spreading illness? Should I take my kids out of school? Cancel travel plans?

How should we help a panicked world?

Remember What We Know

First, it’s important to be reminded about what we already know. Worry is not our friend, and panic is not our way. Solomon reminds us, “If you faint in the day of adversity, your strength is small” (Prov. 24:10). May it never be said that God’s people are governed more by fear than faith.

Corrie ten Boom, along with other faithful from among the nations, led courageously in the face of the Nazi fascism—a different form of deadly virus. And she reminds us, “Worry doesn’t empty tomorrow of its sorrows, it empties today of its strength.”

In times of crisis, the world needs steady people who are strengthened by God’s grace and selfless by God’s power. Worry accomplishes nothing except weakness of heart and head. It’s been said that 90 percent of the things we worry or become panicked about never happen, and the other 10 percent are outside our control.

While we remain on alert against viruses of doctrine or disease, worrying won’t change our circumstances or lower our chance of infection. It won’t help us fight off illness or move us to action. Worrying about COVID-19 (or anything else) will only increase trouble. Rather than worrying and being anxious, Jesus calls us to respond with prayer and faith in him (Matt. 6:33–34; Phil. 4:6). We need not worry ultimately because we know the One who has defeated sin and death (1 Cor. 15:55–57).

Remind yourself continually: it takes the same amount of energy to worry as to pray. One leads to peace, the other to panic. Choose wisely.

Check out the rest of this article here!

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

This article was originally presented at The Christian Economic Forum 2018.
Check out CEF for other quality content!

The Christian Economic Forum hosts a world-class Global Event each year to connect the top industry leaders and experts from around the world with other individuals who are compelled to act upon the principles of God’s economy. The following paper was presented at CEF 2018.

— by Henry Kaestner

The concept of the buy-out fund has been around for decades, if not centuries. The latest flavor of the buy-out fund, the “search fund,” has garnered an increasing level of press over the past few years. This is because of its ability to provide better investment returns than other flavors of private equity funds, but this is not the only thing that should make us all take notice. It’s the unique way in which “searchers” discover and acquire companies that make it a great model for marketplace transformation, and with time it might prove to be a very effective way to put money to work for God’s Kingdom while looking for solid investment returns.

When we started Sovereign’s Capital (a venture fund family in the US and Southeast Asia), it was because of our belief that like-minded capital invested in a faith-driven entrepreneur might result in a company better equipped to love on its partners, vendors, customers, and employees in a way that pointed to something more significant than the manufacture and distribution of “widgets.” We believed, as do so many of you, that entrepreneurs fueled by the creation mandate and with their identity deeply rooted as a beloved child of God (not as the wunderkind of 20% month over month growth), might be a force for marketplace transformation on one hand, and on the other provide great financial returns for like-minded investors.

Through the grace of God, I think this thesis is being proved right. Don’t get me wrong—it’s too early to declare victory from the rooftops (other than THE victory). Still, we have seen that an entrepreneur whose hope is in the Lord can tap in this nuclear-like energy and lead businesses that scale, compete, and win in the marketplace.

We’ve seen this in Grab! in Southeast Asia, in CloudFactory in Nepal and Kenya, in FiveStars and ManCrates in the US, and in over 30 other businesses. What’s common among all of these businesses is what they are: fast-growing, venture-backed companies with valuations that are, at times, unbelievable.

Another commonality is what they are not: traditional, mainline, positive cash flow businesses that provide the marketplace and cultural fabric accompanied by valuations that can hold up at any stage of the economic cycle. It’s an issue of what is often thought of as dull/ boring versus exciting/new businesses. The point of this white paper is that we (Sovereign’s) and a whole lot of others (as price is a function of supply and demand) have missed how traditional, “dull” businesses are such a great force for the Kingdom. We started our venture fund to help cultivate the Kingdom-affirming culture while the DNA was being set in the early days, then help that company and DNA scale to impact more lives and markets. We’ve come to realize that a complementary need in the marketplace is to find companies that have already scaled such DNA and are impacting lives in traditional companies, and invest with an eye toward maintaining those cultures that affirm human flourishing as founders exit.

Thus we intend to be a part of a larger group that aims to fix this, and in so doing, invest in a new generation of high capacity, faith-driven leaders. This also means investing in the businesses and communities in which they serve, all with an eye toward building enterprises for God’s glory, seeing hearts transformed by the gospel, and doing so at entrance valuations that allow for more cultural impact per dollar invested. Just as importantly, we believe that investing in this class of business can provide risk adjusted returns, at or above venture.

Search Funds: Better Returns and Spiritual Integration Because of a Unique Staffing Model

“Search funds” are fueled by “searchers”; typically these are newly minted MBAs who are looking to forgo the management consulting or investment bank tracks in favor of being a CEO of a company on day one. Not all new MBA entrepreneurs become searchers. Some young entrepreneurs, inspired by a new problem for which they feel uniquely situated to solve, head off to start the next big new SaaS business or Hyperloop competitor. We see these folks on the venture side of things where thousands of venture capital funds are eager to learn about (and then bid up) the next Uber or AirBnb. Others, however, are more interested in more traditional businesses—those whose value is established rather than aspirational. These are the entrepreneurs we are focusing on in this paper and in our new fund. The businesses these entrepreneurs will run come in all sorts and shapes, anything from restaurants to light manufacturing to distribution. Searchers understand and value a company whose product market fit was established decades ago, and who has shown a long history of delighting customers, providing meaningful employment and who has a history of being a valuable member of the industry and the village/town/city where it’s based.

How a Search Fund Works

Searchers typically raise funds to fuel their search by selling units in their new fund (effectively selling units in their career). This provides the searcher with a modest salary and expenses and gives each unit holder the right to convert their investment into equity in the new company as well as an option to purchase more, which provides the equity capital necessary for the acquisition. The searcher typically then ends up with 20-25% of the newco with the balance being split between the search fund investors and a small option pool for key employees.

Why It’s Better

The advantage of this model versus the more traditional buy-out fund is that it’s the searcher who finds the deal and establishes the all- important relationship with the seller/founder/ outgoing CEO. This is the searcher’s dream job. They’ve found it and are therefore more likely to stick with it, perhaps dedicating their entire career to this company. The early relationship with management means they better understand the business they are buying and have relational equity with the outgoing leader. This provides mentorship as well as a smoother transition than would occur from a buy-out fund that recruits a new CEO post-transaction. The searcher then typically spends the next year learning from the former CEO and the senior management team before making changes too early that might compromise the standing of the company. The company then benefits from a searcher who knows the business and has new energy and ideas to grow the company.

We believe a model like this is a great solution for the tens of thousands of faith-driven business owners who are looking for an exit after decades of hard work, but who don’t want to give up the faith-driven culture of their businesses. These are men and women who are experts in their industries and leaders in their communities. With some level of earn out, they have every incentive to see the new owner prosper in the business. With the right type of Kingdom-minded seller, they should have additional incentive to invest in the discipleship of their successor as they are eager to see their business have the type of godly legacy that hopefully motivated them for their career.

We are committed to this model. We think there’s an opportunity to take it to a new level by bringing on board a team or cohort of searchers (perhaps 6-8) who can unite and take encouragement in shared purpose, combining the best attributes of a fellows program and its focus on discipleship with a YPO-type group that can provide community and encouragement both during and after the search process. Additionally, we believe that a fund (or a holding company for a more permanent capital model) that invests in searchers can provide additional benefits—from deal flow generation to procuring the networks of advisors—that can help the searcher through the transaction and beyond. Imagine a world of intergenerational friendships driving business forward around the globe for God’s Kingdom.

Read the whitepaper in its original form here.